pages: GolfCommission/2008-06-04.pdf, 4
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GolfCommission | 2008-06-04 | 4 | Commissioner Bill Delaney met with Finance Director Juelle-Ann Boyer and Mr. Lillard in January regarding Golf Complex finances, he asked specifically if the Golf Commission could be involved in preparing the budget for the next two fiscal years. It is impossible to become involved in the administration of a budget if one has no involvement in the budget preparation process, and the Council charged the Commission with responsibility for the Golf Complex budget at its joint meeting in January 2007. Nevertheless, no one from the Golf Commission was ever invited to become involved with the budget process. Marshal Bill Wehr questioned why the Golf Complex was being asked to fund the Beltline litigation, and whether the costs were being assessed against any other City department. Chair Sullwold said her best guess was that the City had to charge the expense against the few City departments that had cash reserves from which the charges could be paid. Commissioner Schmitz noted that it was the City's prerogative to assess the charges in that way, because in the final analysis it is the City's money, but the City needs to be honest and open about what it is doing, and not take the money away secretly, then complain loudly about the fact that the Golf Complex has a projected loss of $440,000 next year. Chair Sullwold pointed out that it is unreasonable to take away so much money from Golf Complex revenues that an insufficient amount remains to pay what are fixed labor expenses and fixed expenses for necessary services such as tree maintenance that cannot be reduced. George Humphreys asked if the Golf Complex would be reimbursed after successful final resolution of the Beltline litigation. No one knows the answer, but most agreed that it was unlikely. Moreover, no one has ever suggested that the Golf Complex be repaid for the loan of $300,000 it made regarding the preliminary efforts to build another golf course at Alameda Point. For some unknown reason, that loan earns zero interest. George Humphreys noted that the Golf Commission had spent a lot of time investigating the cost of renovating the clubhouse to create banquet space and asked about the results of that investigation. Chair Sullwold noted that the Commission's first effort was a tent structure, but that ended when the Commission learned that infrastructure costs would be millions of dollars. Then the Commission concentrated on costing out improvements to the existing buildings, but was frustrated by lengthy delays that were contributed to by staff in certain respects. When the detailed cost estimate by an independent professional cost estimator numbers finally arrived, the total was quite reasonable, but by that time it was apparent that there was no money available to spend from the Golf Complex enterprise fund because that money was needed to pay ordinary expenses during the time it would take to find an outside vendor, should that be the ultimate decision of Council. Chair Sullwold said that she thought a discussion of this lengthy process should not be included in what is already a long letter, but should be mentioned in private discussions with Councilmembers. A discussion ensued as to whether any outside vendor would be interested in leasing the Chuck Corica Golf Complex. Although many municipalities are seeking outside vendors, and it is clearly a buyer's market, the Golf Complex balance sheet shows that, without considering City take-aways, revenues exceed expenses, even with very high labor costs. On the other hand, the courses need lots of expensive capital improvements to be competitive with other area courses. It is unlikely that any vendor will offer a lease payment equivalent to the $900,000 per year that the City has been pulling out of the Complex off the top, although it seems likely that some company will be interested in such a prime piece of golf course real estate. Chuck Corica Golf Complex Page 4 06/04/08 Golf Commission Minutes | GolfCommission/2008-06-04.pdf |